mom and i sold houses together for over 22 years, until she retired in 2015. i have kept on selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :) www.tkmomteam.com

93.9% Of Homes in The US Have Positive Equity

CoreLogic’s latest Equity Report revealed
that ninety-one thousand residential properties regained equity in Q1
2017. The outlook for 2017 remains positive as well, as an additional
600 thousand properties will regain equity if home prices rise another
5% this year.

The study also revealed that:

Roughly 63% of all homeowners have seen their equity increase since Q1 2016

The average homeowner gained about $14,000 in equity between Q1 2016 and Q1 2017

Only 1.6% of residential properties are near-negative equity

Below is a map showing the percentage of homes with a mortgage, in each state, that have positive equity. (The states in gray have insufficient data to report.)

Significant Equity Is On The Rise

Frank Martell, President & CEO of CoreLogic, believes this is great news for the “long-term health of the U.S. economy.” He went on to say:

“Homeowner
equity increased by $766 billion over the last year, the largest
increase since Q2 2014. The rising cushion of home equity is one of the
main drivers of improved mortgage performance. Since home equity is the
largest source of homeowner wealth, the increase in home equity also
supports consumer balance sheets, spending and the broader economy.”

Of the 93.9% of homeowners with positive equity in the US, 78.8% have significant equity (defined
as more than 20%). This means that nearly three out of four homeowners
with a mortgage could use the equity in their current home to purchase a
new home, now.
The map below shows the percentage of homes with a mortgage, in each state, that have significant equity. (The states in gray have insufficient data to report.)

Bottom Line

If
you are one of the many homeowners who are unsure of how much equity
they have in their homes and are curious about their ability to move,
let’s meet up to evaluate your situation.

Tuesday, August 29, 2017

Millennial Homeownership Rate Increases

Recent headlines exclaimed the homeownership rate, as reported by the Census Bureau,
rose again in the second quarter of 2017. What didn’t get much
attention in the reports is that the homeownership rate for American
households under the age of 35 increased a full percentage point from
last quarter’s 34.3% to 35.3%. Millennials proved to have the highest
increase of any age group.
This came as a surprise to some
considering Millennials have come to be known as the “renter”
generation. However, a new study by First American, 6 Trends Poised to Reshape Homeownership Demand, revealed reasons why homeownership numbers will continue to increase for Millennials.

Millennials are the most educated generation in the U.S.

Why does that matter? First American explains:

“Our
model shows that, all other factors being equal, the likelihood of
homeownership increases by 3 percent for those that earn a bachelor’s
degree over those with a high school degree. The likelihood of
homeownership jumps another 3 percent for those that earn a graduate
degree.”

The more educated, the better the
likelihood for homeownership. And, as we mentioned: Millennials are the
most educated generation in the U.S.

Homes & marriage go together

Marriage is a key determinate in homeownership. According to an analysis by First American, the homeownership rate is 30% higher among married couples compared to non-married households.
Millennials
have put off marriage in the pursuit of higher education. As this group
ages, more and more will marry and purchase a home.

Parents buy houses

According to the study:

“The
homeownership rate is 1.7% higher for households with one or two
children compared to households with no children, and it is 5.4 percent
higher for households with three or more children.”

The
report goes on to say that as Millennials grow older there may be an
increase in not just marriage but also in married couples with children.
That will probably also create a “corresponding” increase in
homeownership demand.

Wages and the economy

The
study goes on to explain that recent gains in income growth and a
strengthening economy will also help all generations (including
Millennials) be more willing and able to purchase a new home.

“Despite
a slight improvement from 2014, fully one-third of US households paid
more than 30 percent of their incomes for housing in 2015. Renters continue to be more likely to face cost burdens…the
number of cost-burdened renters (21 million) considerably outstrips the
number of cost-burdened owners (18 million) even though nearly
two-thirds of US households own their homes.”

These households struggle to save for a rainy day and pay other bills, including groceries and healthcare.

It’s Cheaper to Buy Than Rent

As we have previously mentioned, the results of the latest Rent vs. Buy Report from Trulia shows that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
The
updated numbers show that the range is an average of 3.5% less
expensive in San Jose (CA), all the way up to 50.1% less expensive in
Baton Rouge (LA), and 33.1% nationwide!

Know Your Options

Perhaps you have already saved enough to buy your first home. A nationwide survey of about 24,000 renters found that 80% of millennial renters plan to eventually buy a house, but 72% cite affordability as their primary obstacle. Aside from affordability, one in three millennial renters have concerns about their credit scores, and another 53% said that a down payment is an obstacle.
Many first-time homebuyers who believe that they need a large down payment may be holding themselves back from their dream homes. As we have reported before,
in many areas of the country, a first-time home buyer can save for a 3%
down payment in less than two years. You may have already saved enough!

Bottom Line

Don’t
get caught in the trap that so many renters are currently in. If you
are ready and willing to buy a home, find out if you are able. Let’s get
together to determine if you can qualify for a mortgage now!

Tuesday, August 1, 2017

A ‘Buyer’ in Hand is Worth Two in the Bush

In today’s highly competitive seller’s market where there are more
buyers than there are homes for them to buy, some sellers may feel like
the ball is in their court.
And they would be right when it comes
to choosing which offer to accept, the closing date, or even which
improvements they are willing to make to their house prior to selling.
One thing to remember though, is that there is always a line that shouldn’t be crossed.
Interest
rates can change, financing might not go through, the appraisal might
not come back at the price that you have agreed to. These are all
opportunities to work with your buyer to make sure that the sale still
happens.
You may think that, because buyer demand is so high right
now, you can choose to make your buyer jump through hoops. But what
happens if they reach their limit and need to walk away? You’re starting
over… weeks, maybe months later… and other buyers may wonder what’s
wrong with the house since the last deal fell through.

The Golden Rule

We were all taught from a young age to “treat others as you would like to be treated.” This shouldn’t change once you have a buyer who seems as though they would do anything to buy your home.

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About Me

i am a mom. and a wife. and a realtor. when i grow up i want to spend all day taking pictures and then spend all night looking at them. in the meantime, i am going to keep selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :)